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Q. What does minimum cost mean in you plan examples? How does it relate to the monthly cost?

Terry Ryan
22/12/2010 11:18:49 AM

The minimum cost is the minimum you will pay over the lifetime of the contract. It's not something you have to pay every month, or an upfront cost, it's just a way of letting you know exactly what you are signing up for.

It is calculated by multiplying the monthly cost by the number of months on the contract, plus the set-up fee. It doesn't include any other costs like a modem, or any phone calls you might make, or excess charges for data, if there are any.

This can help when you are comparing two plans with similar contract lengths. For example, one plan costs $50 a month over 12 months, with a $50 set-up fee. But another plan costs $45 a month, with a $150 set-up fee.

The minimum cost for the first plan is calculated as (50x12)+50=650The minimum cost for the second plan is calculated as (45x12)+150=690

So from the minimum cost, you can tell straight away that the second plan is more expensive than the first plan, even though the monthly cost is lower. It's something the ACCC asks all broadband providers to include on their plans to make it clear to consumers what they are signing up to.

Remember when comparing plans that there may be other costs involved, such as a modem (if you don't have one) excess fees, cancellation charges and relocation charges. If you are signing up to a bundle plan, call charges may be more expensive than your current plan.

If you need more information on charges and fees, give the provider a quick call before you sign up. You can call iiNet on 1300 106 571, Westnet on 1300 768 134, iPrimus on 1300 137 794, Optus on 1300 137 897, TPG and Exetel on 1300 106 571 and Spin on 1300 381 277.

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Q. What does minimum cost mean in you plan examples? How does it relate to the monthly cost?

Terry Ryan
22/12/2010 11:18:49 AM

The minimum cost is the minimum you will pay over the lifetime of the contract. It's not something you have to pay every month, or an upfront cost, it's just a way of letting you know exactly what you are signing up for.

It is calculated by multiplying the monthly cost by the number of months on the contract, plus the set-up fee. It doesn't include any other costs like a modem, or any phone calls you might make, or excess charges for data, if there are any.

This can help when you are comparing two plans with similar contract lengths. For example, one plan costs $50 a month over 12 months, with a $50 set-up fee. But another plan costs $45 a month, with a $150 set-up fee.

The minimum cost for the first plan is calculated as (50x12)+50=650The minimum cost for the second plan is calculated as (45x12)+150=690

So from the minimum cost, you can tell straight away that the second plan is more expensive than the first plan, even though the monthly cost is lower. It's something the ACCC asks all broadband providers to include on their plans to make it clear to consumers what they are signing up to.

Remember when comparing plans that there may be other costs involved, such as a modem (if you don't have one) excess fees, cancellation charges and relocation charges. If you are signing up to a bundle plan, call charges may be more expensive than your current plan.

If you need more information on charges and fees, give the provider a quick call before you sign up. You can call iiNet on 1300 106 571, Westnet on 1300 768 134, iPrimus on 1300 137 794, Optus on 1300 137 897, TPG and Exetel on 1300 106 571 and Spin on 1300 381 277.

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